7 Steps to Filing a Life Insurance Death Benefit

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The loss of a loved one is always a difficult and stressful time. In addition to going through the stages of grief, we’re often faced with making difficult decisions regarding the deceased’s burial. Bills must still be paid and, oftentimes, financial and legal issues must be addressed.

Fortunately, you and your loved one set up a life insurance policy to help you get through this distressing time. While a part of you might feel uncertain about filing a death benefit claim, keep in mind that the purpose of this policy was to help you cope as you get accustomed to this new normal. The expenses that emerge shortly after a loved one’s death are often significant. Surprisingly, many individuals abandon their loved one’s life insurance policy, leaving over $1 billion in unclaimed life insurance benefits. Don’t put you and your family through additional unnecessary turmoil. File for the benefits due to you.

While the specifics vary slightly from company to company, below are the next steps you must take to file a claim.

1) Find a Copy of the Policy

Hopefully, you’re aware of where the deceased’s life insurance policy is located. If not, nightstands, bookshelves, filing cabinets, and desks are the most common places for storing important papers.

Tip: In many states, safety deposit boxes are sealed immediately after one’s death. To avoid settlement delay, encourage loved ones to avoid storing their policy in a safety deposit box.

2) Check to Ensure There Aren't Any Other Policies

Many employers offer life insurance, accidental death, and dismemberment riders as part of their benefits package. Check with your loved one’s human resources to see if there are any additional policies you weren’t aware of.

Surviving family members are also often entitled to a small burial benefit (or monthly survivor benefits) through Social Security. Additionally, if your loved one was traveling when he/she passed, check with a representative from the credit card that was used to make travel arrangements.

3) Notify the Agent

As soon as you’ve located the policy paperwork, you’ll want to notify the insurance company. If an independent agent sold you the policy, consider contacting them directly. She can act as an intermediary with the insurance company, ensuring the process goes smoothly. If the deceased purchased a group life policy through their employer, the human resources department can assist you in filing your claim.

4) Obtain Copies of the Death Certificate

A certified copy of the person’s death certificate is required to file a death benefit claim. This can be obtained within a few weeks of their death, through the vital records department in the state in which he/she resided. The funeral director can assist you in acquiring this information.

5) Request Claim Forms From Insurance Company

Request a copy of the claim forms needed to file for benefits. Review the paperwork carefully and be sure to gather any additional paperwork that may be required.

If you’re unable to fill out the forms or simply do not understand portions of the paperwork, ask your estate attorney or insurance agent for assistance. Each beneficiary will have forms to fill out and sign.

6) How Do You Want Benefits to Be Paid?

There are typically multiple payment options available to beneficiaries. Check with your financial advisor, insurance agent, or estate attorney regarding these options. They can help identify the best possible payout for your unique situation.

7) Submit Completed Forms to Insurance Company

Return your completed forms, along with a certified copy of the death certificate and any other required paperwork, via certified mail or with a request for return receipt. Most states require life insurance benefits be paid within a certain amount of time, but the number of days vary from a few weeks to a few months.

If you’re unsure if your loved one had a life insurance policy, MIB’s policy locator service may help you find the information you need. The American Council of Life Insurers (ACLI) is also a great resource for finding missing information.

Keep Your Family Protected: Devise an Emergency Plan Today

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If you’ve ever experienced an emergency evacuation, you know how stressful and scary it can be. Most of us are busy living our day-to-day lives, never really considering how we would handle an evacuation in our area. Despite popular belief, evacuations are fairly common, happening across the country multiple times per year. From hurricanes to wild fires and hazardous chemical spills, your family could be forced to evacuate, with only a few minutes to pack up and get out. With so little time, it is essential that you and your family have a plan of action, should such an emergency pop up.

Start Planning Now

We rarely know when a disaster may strike. There’s a strong possibility that your family won’t be together, when an evacuation is ordered.

Consider the following when devising your family’s disaster plan:

  • What types of disasters could potentially strike in your area? What special steps should be considered for each disaster type?
  • If separated when an evacuation is ordered, what is your communication plan?
  • How will you reconnect with each other if separated? Establish a family meeting place that everyone can remember and find.
  • How will you and your family receive emergency warnings/alerts?
  • What are the locations for surrounding emergency shelters? If you have pets, which ones allow animals?

    What is your region’s evacuation route?

Your Family’s Communication Plan

Personal belongings can be replaced. Family cannot. The first thing you’ll want to do when disaster strikes is communicate with each family member. How will you contact one another? Many disasters interrupt cell phone service, so make sure your plan includes multiple modes of communication.

Follow these steps when formulating your communication plan

  • Have each family member fill out a contact card, that should be kept with them at all times. The CDC recommends FEMA’s card, which can be downloaded here.
  • Decide on an emergency contact. Make sure their contact information is included on your contact card. If possible, memorize their phone number. Ideally, your emergency contact should be a friend or family member that lives out of town. Family members can call, text, or email this person to let them know they are safe, where they are, etc.
  • Make sure everyone has access to emergency phone numbers. This should include: your emergency contact, police, fire department, and hospitals.

Prepare a Family Disaster Plan

Your family should have a well-defined disaster plan that addresses each potential disaster that could affect your area. Download FEMA’s Emergency Plan and fill out accordingly.

Additional Emergency Preparedness Tips

There are a few additional tips your family will want to take when planning for a disaster.

  • Create a supply kit that includes medicine and a first aid kit. Check and replace supplies periodically throughout the year.
  • Identify reliable disaster information resources. Download mobile apps and consider investing in an emergency weather radio.
  • Review your insurance policies. Identify any coverage gaps that could leave you vulnerable.
  • Make sure each family member knows how to shut off household utilities, such as water, gas, and electricity. Everyone should also know where fire extinguishers are located and how to use them.

Some regions in our country are more vulnerable to the wrath of Mother Nature than others. Residents in those areas should be diligent about their family disaster plan, practicing or reviewing each scenario regularly. The more you practice, the less you’ll have to think about it when it comes time to put your plan into action. While there is no controlling what disasters we’re faced with, we DO have control over how we respond. Your family’s plan could literally safe lives. Wouldn’t you rather have a plan and never need it than be caught unprepared?

How to Protect Your Business this Hurricane Season

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Hurricane season started June 1st.  While the last several years have been fairly quiet, it only takes one strong storm to wipe out everything you’ve worked so hard for. While there is no controlling what Mother Nature delivers, there are steps you, as a business owner, can take to minimize the damage done, both financially and structurally.  

Since your employees and family rely on the business to support their lives, it pays to be prepared.  Consider taking the following steps to ensure you’re in the best possible position to counteract hurricane damage.

Pinpoint Structural Risks

Just because your business is miles from the coast doesn’t mean you can’t sustain damage. Have a certified professional assess the structural integrity of your business’ building. Check for potential weak spots or areas which need maintenance. Spending some money to prepare for a storm is always the preferred option to fixing the damage after the storm. By making sure your building is prepared, you’ll also be making sure your business is prepared. Consider the setbacks you’ll be facing if your business can’t run because of structural damage. Now, imagine if these setbacks could have been avoided with a few simple repairs.

After you’ve made the necessary repairs and preparations, document your structure with photos. This kind of visual proof will help, if you need to replace or rebuild.

Understand Your Policy Coverage

Many insurance companies have strict rules against making policy changes when severe weather or natural disasters are imminent. This is why it is necessary to meet with your agent and periodically review your business (and personal) policies. Look for legal changes, loopholes or necessity for expanded or changed coverage. Any sort of gap in coverage may exclude you from collecting what you’re owed for damages, for instance. Remember, your company’s success is often determined by how fast you can bounce back from all kinds of setbacks, especially natural disasters.

And make sure your coverage matches your location. Florida business owners, for instance, will want to have hurricane coverage as well as flood insurance, as both of these scenarios are possible, often at the same time. Determining your flood zone will help you estimate coverage costs. Your agent will also be able to address what policies will best fit your needs and give you information on who to call, should you need to declare a loss.

Test For Technology Breakdowns

With most modern businesses relying heavily on tech for their daily business, it is a serious consideration when preparing for potentially catastrophic damage. Where and how is your data backed up? How much would it cost to replace your hardware? Is any of your sensitive financial or customer data able to be compromised, in the instance of a service interruption? These and other specific questions should be asked ahead of time. Just like structural integrity, you want to regularly check for technological failures and walk spots. Test your systems regularly and make necessary upgrades, even for normal business operations. Then, develop a contingency plan in case your safeguards don’t work like they should. Keep a back up to the back up plan at all times.

Keep Valuables Stored in Alternative Locations

As stated above, many businesses are incredibly reliant on technology and online data. Therefore, having paper-based documentation and data can be critical, especially when power is out for an indefinite amount of time. Have your sensitive information safely secured offsite will also help when you’re physically unable to reach your business.  

Create a List of Contacts 

Keep a complete and regularly updated list of employees, contacts, vendors, lawyers, accountants, and other vital individuals. Include this contact information in your paper-based documents you’ve securely stored offsite. Keep in mind that you may be reduced to a telephone call, at best, for quite sometime if you’re hit by a major storm. Outside help may be a lifeline to keeping your business and livelihood alive.   

Assign Team Member Responsibilities

When a big storm does make it’s way to you, you’ll have to be reliant on the people around you to be prepared and know what to do. The less you have to direct, the better you’ll be at addressing problems on the fly. And the directions given ahead of time will also ease your team, as they will clearly know what is expected of them and how they should approach their duties.  

Team Communication Is Critical 

When normal communication methods fail, it will fall on your team to follow pre-determined instructions. If your business is in the field, for instance, you’ll want to have designated meet-ups to gather team members who may be on the road. No matter the business you’re in, you need to prepare your employees well ahead of time and review your plan regularly to include new employees or policies on handling emergency situations.

Emergency Kits Ready!

Emergency kits for businesses aren’t just first aid supply, but more of a mobile office. All of the vital paperwork discussed above, along with some necessary tools of the trade will need to be in an easily accessible and ready to move location. You may only have hours to prepare, in some situations.   

No matter the emergency you’re preparing for, it’s important to consider as many possible problems and solutions to match. Being prepared for the worst is so much less painful than attempting to pick up the pieces in the aftermath, especially if you didn’t plan properly. Whether it’s hurricane insurance, increased property coverage or flood insurance, conducive to your flood zone, making sure you’re financially covered is an important cost for any successful business.

6 Reasons for Purchasing Life Insurance

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Reaching adulthood means a shift in priorities. We have a greater sense of responsibility. Family and friends depend on us more than ever before. An unexpected death often means our loved ones are affected financially. Despite this knowledge, however, many of us neglect to purchase life insurance – the very protection that could ensure financial stability to those left behind. In fact, recent studies reveal that 41% of U.S. consumers carry no life insurance coverage at all. Nearly 1/3 of Americans that do carry coverage only have the basic group policy offered by their employer.

Do you have enough life insurance to protect your family? If you’re one of the 41% that doesn’t, here are 6 reasons why you should start shopping rates now.

1) To Protect Your Family

It seems appropriate to start with the most obvious reason – life insurance can replace your income should you die before your dependents. Whether you’re the breadwinner or a homemaker, what you provide for your family adds value to the family unit.

As difficult as it will be, life must go on after your passing. And you want it to – you want your children to go to college and your family to enjoy the lifestyle they are accustomed to. Your investment in a life insurance policy ensures your family has what they need to pay the bills and/or hire someone to take care of household duties. At the very least, it offers your family an opportunity to grieve without the added stress money brings to the table.

2) To Honor Any Outstanding Debts

For many, protecting family members left behind is the primary reason for purchasing life insurance. While your dependents are struggling to deal with their loss, the last thing they need is lenders breathing down their neck. Some debts, such as federal student loans, are dischargeable when you die. Many, however, are not. In fact, some private loan contracts include an acceleration clause that requires the balance be paid in full once the borrower has passed.

3) To Protect Your Business and Partners

Business owners have a responsibility to more than just their family. They have employees and business partners to consider and, for many, their death could have a significant impact on those left behind. If you’re unfamiliar with key man life insurance, visit our blog for more details regarding this critical business tool.

4) Can Be Used in Estate Planning

When a family member dies, those left behind are often left with a great deal of expenses. Funeral costs and federal and state estate/inheritance taxes can leave some heirs scrambling to sell off assets.

For individuals whose goal is liquidity, a life insurance policy, such as an irrevocable life insurance trust, can prove beneficial. The policy cannot be modified, revoked, or terminated for as long as you’re alive. Upon your death, proceeds are protected against creditors and estate taxation.

5) Your Employer Coverage is Lacking

More than 50% of employers today offer life insurance as part of their employee benefit package. While this is a wonderful benefit that we recommend taking, we do not recommend relying on this as your exclusive death benefit. Most group life insurance policies offer minimal protection, covering one to two times the employee’s annual salary, at most. Most agents and financial advisors recommend a MINIMUM of seven to ten times your annual salary. And, that’s just a starting point. For more information regarding employer life insurance coverage, visit our blog The Downside to Purchasing Life Insurance Through Your Employer.

6) The Longer You Wait, the More Expensive It Will Be

The older you get, the more health issues tend to pop up. The earlier in life you purchase a term life insurance policy, the cheaper the premium you will pay. A 20-year, $500,000 term life policy would only cost about $16 at age 35. It will double in price at around age 45 and will be close to $65 by age 55, assuming you don’t have any health complications along the way.

If this is something you’re considering, be sure to seek the guidance of an experienced life insurance agent or financial advisor.

Few of us want to face our own mortality. It can feel somber and depressing. Just the same, it is a fact of life and few of us know when it’s coming. The best we can do is prepare for the aftermath. Fortunately, life insurance isn’t nearly as expensive or difficult to acquire as many people assume, especially with the assistance of an experienced agent. Make a plan today for the future that is tomorrow.

Is It Possible to Obtain Life Insurance After a Cancer Diagnosis

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Years ago, receiving a cancer diagnosis signaled the beginning of the end. Recent medical advancements, however, have lead to more positive outcomes, turning many victims into survivors. With almost 14 million people in the United States still facing this diagnosis, though, many of us are aware of the unpredictable nature of such a disease. A cancer diagnosis reminds us all that life is unpredictable, forcing us to face the possibility of death at any moment. The welfare of our families becomes top priority, and shopping for a life insurance policy suddenly feels urgent.

But, can one even obtain a life insurance policy after a cancer diagnosis? Many assume the answer is “no.” While navigating the application process may be a little challenging and time-consuming, there are reasonable options available. If you’re considering shopping for life insurance, don’t let your cancer stop you from getting the protection you need.

What is Underwriting Looking For?

Most insurance companies have access to the National Cancer Institute’s “Surveillance, Epidemiology, and End Results” (SEER) database. This database offers information on cancer patients based on tumor locations, diagnosis stages, initial treatment plans, follow-up procedures, demographics, and morphology. This, coupled with information gathered from you personally, will help the underwriter in assessing the risks.

Potential insurers will request the following information:

  • Diagnosis date
  • Type of cancer
  • Treatment plan
  • Length of time in remission
  • Stage and grade of cancer
  • Tumor mass
  • Lymph node involvement
  • Start and end date of treatment
  • Current and past medications

While most insurers require applicants to be cancer-free for at least five years, this is not a hard and fast rule. In some cases, if the prognosis is good, patients have become eligible for a policy before completing their treatment plan.

Underwriting for Specific Cancers

There are several forms of cancer that insurers will closely consider when reviewing an application:

Melanoma – Melanoma is a more aggressive and dangerous form of skin cancer, resulting in the majority of skin cancer deaths. The insurer’s concern is this form of cancer’s tendency to metastasize and spread throughout the lymphatic system and organs. As with basal cell carcinoma and squamous cell carcinoma, patients with no complications during removal, and who have been cancer-free for one to two years, are often eligible for an insurance policy. Patients whose cancer required chemotherapy and/or radiation as part of their treatment plan could have to wait as long as ten years before obtaining a policy.

Breast cancer – Underwriting will ask breast cancer survivors a series of questions to determine eligibility. The longer the applicant has been in remission, the better their chances of getting approved.

Prostate cancer – Prostate cancer survivors are often approved for a life insurance policy shortly after treatment, assuming they are willing to pay at a higher rate. Underwriting will examine the applicant’s Prostate Specific Antigen (PSA) levels and Gleason score. The Gleason score determines the likelihood of the cancer spreading. This, coupled with the number of years cancer-free and the type of treatment a patient has undergone, will all be factors in determining both eligibility and rates.

What Every Cancer Patient Should Know to Ensure Eligibility and Lower Life Insurance Rates

  1. Keep all medical records together and organized. Be sure to include initial diagnosis and pathology report, as well as the prescribed treatment plan.
  2. Leave the treatment plan to the professionals. WebMD is filled with some valuable information. It does not, however, make you a doctor. Follow your doctor’s treatment plan.
  3. If possible, wait until you are in complete remission and your health has stabilized.
  4. Don’t apply for the first insurer that offers you a rate quote. Find a trusted life insurance agent that can help you shop around. Each insurer has their own set of underwriting guidelines; your insurance professional can help sift through your options and help you find the very best policy for your situation. They can also help you negotiate with potential insurers and educate you regarding additional options.
  5. Consider a graded policy, which offers increased death benefits, as you age.

Have you applied for a life insurance policy post-diagnosis? If so, what challenges have you faced? What was the end result? We would love to hear your story in the comments below.

Does Family History Really Affect Life Insurance Premiums?

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Once you have applied for life insurance, an underwriter will review your application to determine eligibility and identify your rate class. There are several factors the underwriter will consider during this process. They will include: age, current health status, extracurricular activities, and family history.

Yes, that’s correct, your family history does play a factor. You could be in the greatest of health, but still be affected by a family history of poor health. If your family’s health history is less than stellar, this probably raises a lot of questions for you. The purpose of today’s blog is to answer those questions. So, let’s get started.

Why Do They Care About My Family’s Health?

Modern advances in medicine have revealed that many disorders occur more frequently in some families than others. If an immediate family member (father, mother, and/or siblings) have been diagnosed with a serious medical condition, the underwriter will delve a little deeper into their history post-diagnosis. Depending upon the severity, as well as a number of other factors, you could be facing higher policy premiums. In extreme cases, an applicant could be denied coverage.

What Are They Looking For?

While there are a number of health conditions your underwriter will consider, two in particular raise the most concern. Dubbed “The Big Two,” a family history of heart disease or cancer will send up red flags to your life insurance underwriter. Both have been linked to early mortality and are the leading causes of death in the United States. If several family members have been diagnosed with either condition before the age of 60, you will likely be placed in a higher rate class, resulting in a higher premium.

In addition to “The Big Two,” a family history of the following diseases/medical conditions could result in higher premiums:

  • epilepsy
  • cystic fibrosis
  • eye disorders
  • deafness
  • motor neuron disease
  • kidney disease
  • blood disorders
  • liver disease
  • Alzheimer’s disease
  • musculoskeletal
  • bowel disorders
  • Tay-Sachs disease
  • neurological/psychiatric
  • PKU
  • drug dependency
  • respiratory
  • alcoholism

While it is possible that your family’s health history could result in a denial of coverage, do not let that discourage you. The Vista Insurance Group specializes in helping high-risk clients obtain the coverage they need.

What If I’m Adopted?

If you are adopted, finding out your family history could prove difficult, if not impossible. You will not be penalized for this. Note this information on your application and the underwriter will work solely off of your medical history.

Can’t I Just Leave That Information off My Application?

Falsifying or omitting information on your application is considered insurance fraud. If discovered, you could face probation, community service, fines, or even jail time. And, since life insurers have access to MIB (Medical Information Bureau) reports, it’s highly likely that they will uncover the truth.

While most insurance companies will not take the time to prosecute in these cases, the lies will have consequences. It can slow down the underwriting process or, in some cases, cause them to decline the application altogether.

Should you make it all the way through the underwriting process and the policy is issued, you and your family are still at risk. Before paying out, insurance companies investigate death benefit claims. If your lies or omissions are discovered, the insurer has every right to deny or reduce payout to your beneficiaries.

Does Every Insurance Carrier Follow the Same Set of Rules?

No, each insurance carrier follows their own set of underwriting guidelines. Some may place more emphasis on an applicant’s parents’ medical history, while others place equal importance on both parents and siblings. One may deny coverage when both parents have a history of kidney disease, while another may only qualify you for a Standard rating.

If members of your family have been diagnosed with a serious medical condition, the best thing to do is be honest and up-front. The Vista Insurance team is here to assist you in finding the very best coverage at the most affordable rate. We have built relationships with a number of reputable carriers and are here to ensure you obtain the coverage you need for your unique situation.

Will I Qualify for Life Insurance After Bankruptcy?

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By now, you are probably aware that your credit score follows you, affecting insurance rates and your ability to lease an apartment. Oftentimes, it’s even part of the job qualification process. It is safe to assume, then, that a bankruptcy would negate your chances to obtain life insurance, right? The short answer – wrong. While your life insurance underwriter will consider your bankruptcy when reviewing your application, it does not automatically disqualify you.

Before we delve into the specifics of bankruptcy and life insurance, let’s talk about WHY this is even a concern for your underwriter.

Heightened Risks Associated With Bankruptcy

The bankruptcy process is long and arduous. It is a stressful time. One that forces us to reevaluate both past and current decisions and calls for a restructuring of virtually every aspect of our lives. From an underwriting standpoint, this is a valid concern, as stress and anxiety directly affect one’s overall health. As a result, some consumers battle depression and thoughts of suicide, both equally concerning to a life insurance underwriter. As a consumer, it’s important to remember that most life policies contain a suicide clause, barring death benefit payout should the insured commit suicide in the initial years of the policy.

When applying for a new policy, the insurer faces a great deal of upfront costs. From the medical exam to underwriting and agent commissions, it takes several years of premiums to recoup those fees. Therefore, the insured’s financial stability is a consideration. If they believe you to be financially unstable, the insurance company will not want to take on that risk, recognizing there’s a chance they may never break even on your policy.

What Steps Should I Take When Applying for Life Insurance After Bankruptcy?

When some of the major carriers chose to shy away from insuring individuals with a bankruptcy on record, a number of insurers seized this opportunity, tapping into a new pool of risks. Assuming you meet the rest of the underwriting guidelines, you should, hopefully, have several options available to you.

There are a few things you should keep in mind before starting the process:

– As a general rule of thumb, wait at least one year after your bankruptcy has been cleared, discharged, or settled. This is particularly true when filing Chapter 7.
– Work with an independent agent. Their duty is to guide you through the process, which starts with identifying the policies that best fit your unique situation and needs.
– Be upfront with your agent from the start. Provide them with information regarding your bankruptcy including: clearance date and any medical issues that might have contributed to your decision to file.
– Have a clear understanding of what your current budget is and how much coverage you and your family need.

Keep in mind that a bankruptcy can follow you for seven to ten years. So do not assume that, because it has been three years, it is irrelevant to potential insurers.

How Will Bankruptcy Affect My Current Life Policy?

If you already have a policy in force, you’re probably wondering how filing could affect that policy. The answer depends upon what type of policy you have in force.

If your in-force policy is a term policy, filing for bankruptcy should not affect the policy at all. As long as you are able to make your premium payments on time, the policy will remain in force.

If you own a permanent policy, things may get a little trickier. If your policy has been in force long enough to build cash value, there is a possibility that those assets could be assessed. We recommend that you seek the advice of a licensed attorney practicing in the state in which you reside, as bankruptcy rules vary from state to state.

If bankruptcy (or any other issues) is a part of your past, seek the assistance of a licensed independent life insurance agent. At Vista Life, we work with a number of life insurance carriers, ensuring the best possible outcome for your particular situation. If you have any further questions, do not hesitate to contact us at 866-450-2424 or via email.

Life Insurance for Those Living With HIV

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Those individuals living with HIV have, more than likely, found the life insurance market difficult and limited in scope in the past. Fortunately, this reality is beginning to change. More recently, insurance agencies have begun offering greater coverage options for HIV positive customers. With more powerful and effective treatment opportunities becoming available and the overall life expectancy of HIV patients extending, many companies are creating plans to effectively cover these at-risk individuals.

With more than one million Americans currently living with this disease, it is impossible to ignore this segment of the population any longer. The affected individuals are no longer being categorized as having a life expectancy too short to be offered coverage. And, as with most medical and social advancements, insurance companies are evolving to offer the insurance coverage these individuals need and deserve.

When AIDS and HIV first became a National, as well as International epidemic, most insurance companies saw affected individuals as too risky to cover. Indeed, the initial mortality rates were often so high and life expectancy so short, that insurance companies couldn’t properly calculate the risks and reasonable pricing needed to provide coverage. If coverage was available, it was often priced too far out of an individual’s budget. But, with advancements in the effectiveness of the pharmaceuticals available and the overall quality of life of HIV positive individuals improving rather dramatically, insurance companies are re-tooling their business plans to give even more coverage.

Still, you may be wondering what coverages are really available. Is my case unique? What can I expect to pay for a premium? Where do I even begin? Call us today so we can begin to lay out the available plans. At Vista Life, we look to provide the best coverage for each customer.

Our team will sit down with you and discuss options for coverage and costs and can design the right policy for you personally.

The Surviving Spouse’s To-Do List, Part 5: Evaluate Your Finances

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If you’ve recently lost a spouse, you likely have a million things on your mind. You’re being pulled in all different directions, with seemingly everyone needing something from you. And, although there are probably a number of people around and near you during this time, the grief process is really a lonely and scary time.

Today, we are sharing with you Part 5 of our 6-part series: The Surviving Spouse’s To-Do List. Since each individual’s situation is unique, we urge you to review and use this, as a guideline. Seek out at least one trusted confidante, who can help you make decisions. And, more than anything, give yourself the time to grieve.

Evaluate Sources of Income

Recent widows/widowers are urged to postpone making any significant financial decisions until they have had a moment to grieve. Unfortunately, most businesses expect their customers to regularly pay what is owed to them, regardless of what you are going through personally. To carry you through, until your grief feels a little less stifling, conduct a quick assessment of your income and expenses. First, make a list of your current sources of income, as well as any money that might be owed to you in the near future. This should include: current employment earnings, Social Security, dividends, interest, pension payments, and IRA distributions.

Your list could potentially include some income sources that will diminish or disappear in the coming months. For example, if you were receiving a spousal benefit from Social Security, you will no longer receive this. You may, however, be eligible for the survivor’s benefit in its place. As you review your income sources, keep in mind that some expenses will be reduced, as well. Often, the two reductions will balance each other out.

Evaluate Current Expenses

Now it’s time to start a list of your current expenses. If your spouse handled all the bill payments, take a look at your checkbook register or credit card statements. This should give you a good idea as to what bills were regularly paid and when. Separate your expenses into two categories: fixed and discretionary. Your fixed expenses should include items like: mortgage payment, car payment, utilities, auto and homeowners insurance, and groceries. Your discretionary costs will be items like travel expenses, gifts, and donations.

Once you have a list of your current expenses, you can develop a system that works best for you. Pay bills the moment they arrive, or write their due dates on the envelope, arranging them in the order they are due. Everyone has their own organizational system; find what works for you and stick with it.

Are There Any Outstanding Debts?

Time for another list – outstanding debts. You’ll want to place these in three separate categories: joint loans, individual loans in your name, and individual loans in your spouses name. This will make it easier when determining who must be contacted, regarding your spouse’s passing.

For any debts owed exclusively by your spouse, notify the lender immediately. Forward this information on to the executor of the estate or your attorney. You may not be legally responsible for paying off some of these loans. Anything that is owed should be paid for out of the estate. If you are a co-signer on the loan, notify the lender of your spouse’s passing and continue to pay the loans. If you have any questions, consult with your attorney. The last thing you want is for the lender to repossess something, simply because you didn’t understand contractual language.

Once you have a handle on your finances, you’ll be better able to assess what you have, what you need, and what you could do without. Again, don’t make any significant financial decisions right away. Consider your options and where you see yourself in the short and long-term future. The Vista family is here to answer any questions you might have and would be happy to help find someone to assist you with something we cannot. You do not have to be alone on this journey.

The Surviving Spouse’s To-Do List, Part 4: Change of Ownership

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Losing your spouse is one of the most difficult setbacks to overcome. Navigating through the different stages of grief leaves many feeling alone and afraid. This leads to vulnerability and, all too often, the widow(er) becomes the victim of crooks and/or the pressure to make decisions they do not fully understand.

Today, we’re sharing with you Part 4 of our 6-part series: The Surviving Spouse’s To-Do List. Each individual’s situation is unique, so this is meant to serve as a guideline. We urge you to wait before making any life-altering decisions and, of course, seek the advice of a trusted professional when it comes to insurance or financial matters.

Transfer of Ownership

If you are like most married couples, you and your spouse accumulated some assets together throughout the years. You likely also have several bills and policies that are in both your names. You will need to remove your spouse as a named owner/insured, when getting your affairs in order. Again, we urge you to seek legal advice before making any big changes, particularly before the estate has gone through probate. One wrong move could lead to hefty tax implications later.

Below are a few items that should be checked for ownership:

Motorized Vehicles, Recreational Vehicles, & Boats

If there are any vehicles or other assets titled in your spouse’s name only or, if you are jointly listed, they may need to be re-titled out of your spouse’s name. Contact the Department of Motor Vehicles in your state for rules specific to your region.

Credit Cards

If your deceased spouse held credit cards in his/her name only, those cards should be canceled. Typically, those bills will be paid out of the estate.

If you were listed jointly on a credit card, notify the company of your spouse’s recent passing. Ask them to remove her/his name from the account. Payments on these accounts should be made on time to ensure your credit rating doesn’t suffer.

Pro tip: Some consumers experience difficulties when trying to get a new credit card in their name. This typically occurs when all or most of the credit was listed under the spouse’s name only. When applying for a new card, let the lender know that you shared these accounts with your spouse. Do so even if your name was not listed on the account.

Bank Accounts

Joint bank accounts automatically pass on to you, as the surviving spouse. Notify the bank of the recent changes and ask them about the process for retitling and changing the signature card on the account. If you own any stocks or bonds, be sure to notify your financial advisor of your spouse’s passing.

If you spouse held any bank accounts in his/her name only, those assets will have to go through the probate process. Trust accounts are the exception to this rule.

Insurance Policies

Hopefully you have been able to locate the paperwork on any household insurance policies. Auto and homeowners policies will need to be revised to list your name only. Many homeowner insurers require a copy of the death certificate, before making any changes.

If you and your family are currently covered under your spouse’s employer-based medical coverage, notify the health insurance representative immediately. In most instances, you should be eligible for continued coverage through COBRA for up to 36 months. There is typically an increase in monthly premium, and you must remain up-to-date on your premiums to continue with this coverage.

Life insurance policies should be reviewed for any necessary changes. If your spouse was the listed beneficiary on a policy, contact your insurance representative to have that modified as soon as possible.

Pro Tip: Some employers allow the surviving spouse to continue with their current policy. Since your current premium is significantly less than COBRA, check with your spouse’s employer to see what their specific rules are.

Safe Deposit Box

While the rules vary from state to state, most safe deposit boxes require a court order to open, when rented in only one name.

Will

If your will provides for property to pass to your spouse, it should be updated. You may want to contact your estate planner for assistance.

General Finances

Like the credit cards, any outstanding debts/bills shared by you and your spouse should be kept in good standing. Anything in your spouse’s name should only be passed on to the executor of the estate, to be paid by the estate.

Do not immediately make permanent significant financial decisions, such as selling your home, moving or changing jobs. You will need some time to consider your situation before you can make these decisions responsibly. If at all possible, do not rush into a decision you may later regret.

As previously mentioned, we urge you to take your time making any significant decisions. Take a moment to grieve, review your current financial situation, and consider where you would like to go, moving forward. Your primary focus should be on healing from this devastating loss.

Stay tuned for Part 5, where we address the next items on your to-do list. Don’t hesitate to contact us with any questions, at 1- 866-450-2424.